Tether Holdings Ltd., the company behind the widely-used USDT stablecoin, has entered into a strategic partnership with South American agribusiness firm Adecoagro SA. The two entities signed a Memorandum of Understanding (MOU) to collaborate on a large-scale Bitcoin mining project in Brazil, leveraging renewable energy sources.
Adecoagro, a Nasdaq-listed corporation operating primarily in Argentina, Brazil, and Uruguay, currently manages 230 megawatts of power generation capacity derived entirely from renewable sources. This existing infrastructure will play a central role in the new mining venture.
Pilot Project to Use Tether’s Mining Software
The initial pilot program will utilize Tether’s proprietary mining operating system, a site management software solution designed to optimize mining operations. Tether has announced its intention to open-source this software in the coming months, allowing broader access to its tools.
Adecoagro’s corporate governance committee has reviewed and approved the initiative. The company emphasizes that the project is not solely a means to monetize surplus energy. Instead, it represents a strategic effort to diversify its balance sheet through exposure to digital assets like Bitcoin.
Mariano Bosch, co-founder and CEO of Adecoagro, stated, “We are excited to explore innovative methods to maximize the value of our renewable energy assets.” He explained that the partnership could help stabilize energy prices currently sold on spot markets while providing potential upside from Bitcoin’s performance.
Synergy Between Agriculture and Digital Infrastructure
Paolo Ardoino, CEO of Tether, highlighted the natural synergy between Adecoagro’s agricultural energy infrastructure and Tether’s expanding mining operations. “Bitcoin mining promises to highlight the potential of aligning agricultural energy production with cutting-edge digital infrastructure,” Ardoino noted.
Although Adecoagro has built its business around sustainable food and energy production, it is now evaluating Bitcoin mining as a new source of demand for its power generation capabilities.
With 230 MW of capacity, the mining operation could support thousands of ASIC miners, such as the Antminer S19 XP, which consumes approximately 3,000 watts per unit. At this scale, the operation could achieve a hash rate of around 6.9 exahashes per second (EH/s), accounting for nearly 1.6% of the total Bitcoin network hash rate, which currently stands at about 430 EH/s.
Given current mining difficulty levels and an average block reward of 3.125 BTC, the facility could potentially mine a full Bitcoin block every two to three days. If managed efficiently and powered by low-cost renewable energy, the Adecoagro facility would rank among the world’s largest industrial-scale mining operations.
Ardoino also projected that Tether would become one of the largest Bitcoin miners globally by the end of 2025. The company recently disclosed that it holds over 100,000 BTC, valued at more than $10 billion.
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Tether Expands African Partnership with Zanzibar Government
In a related development, Tether announced a separate memorandum of understanding with the government of Zanzibar on July 1. This semi-autonomous archipelago, located off the coast of Tanzania, will partner with Tether to improve financial inclusion and blockchain education.
As part of this initiative, Tether will collaborate with local educational institutions to integrate blockchain and digital asset topics into school and university curricula. The goal is to increase public understanding of decentralized technologies and encourage the development of a local digital economy.
Tether also plans to integrate its stablecoins, including USDT and the gold-backed XAUT, into Zanmalipo—a digital payment platform controlled by the Zanzibar government. This integration will allow users to interact with digital currencies through official, regulated channels.
Ardoino commented, “Our MOU with the Zanzibar government reflects our commitment to advancing financial literacy and sustainable blockchain innovation across Africa.” He added that by investing in education and integrating digital assets into formal systems, Tether aims to help build a compliant and inclusive financial future.
Frequently Asked Questions
What is the focus of the Tether-Adecoagro partnership?
The partnership centers on launching a Bitcoin mining operation in Brazil powered entirely by renewable energy. Adecoagro provides the energy infrastructure, while Tether contributes its proprietary mining software and expertise in digital assets.
How does Bitcoin mining benefit Adecoagro’s business model?
Mining enables Adecoagro to diversify its revenue streams, stabilize returns from energy sales, and gain exposure to Bitcoin’s potential appreciation—all while using its existing renewable energy resources.
What is Tether’s long-term goal in Bitcoin mining?
Tether aims to become one of the world’s largest Bitcoin miners by the end of 2025. The company is investing heavily in mining infrastructure and has already accumulated a significant Bitcoin treasury.
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Will Tether’s mining software be available to the public?
Yes, Tether has announced plans to open-source its proprietary mining operating system in the coming months, making it accessible to other mining operations.
How does the Zanzibar initiative fit into Tether’s strategy?
The Zanzibar partnership focuses on education and financial inclusion, aiming to promote blockchain adoption and integrate stablecoins into regulated payment systems.
What makes renewable energy important for Bitcoin mining?
Using renewable energy helps reduce the environmental impact of mining while providing a cost-effective and sustainable power source for energy-intensive operations.